Enhanced haze law 'not a silver bullet', international cooperation remains crucial: Grace Fu

SINGAPORE: The enhancements to Singapore's Transboundary Haze Pollution Act (THPA) are not a silver bullet for tackling haze pollution, and international cooperation remains crucial, said Minister for Sustainability and the Environment Grace Fu on Wednesday (Nov 4).

In closing the debate in parliament on the Bill, Ms Fu addressed a range of concerns from Members of Parliament, including how the expanded powers would be exercised and their potential impact on businesses.

A total of 24 MPs – 14 from the People's Action Party (PAP), seven from the Workers' Party (WP) and three Nominated MPs – sought clarifications about the proposed changes to the law.

“The THPA is not a silver bullet. It is one of many tools we must use to address the transboundary haze situation,” she said of the law that first came into force in 2014.

The Bill was passed unanimously after a debate that lasted about six hours.

Ms Fu said that even with the expanded powers in the legislation, Singapore can expect challenges in exercising them. However, the government is committed to doing what it can within its powers to reduce incentives for unsustainable forestry and agricultural practices, she added.

“I emphasise that in doing so, the realities require us to accept the limitations of our laws and our agencies’ reach on conduct outside of Singapore,” said Ms Fu.

“We seek to work collectively with foreign agencies. Our law enforcement powers do not extend into other countries' borders, and we respect the laws and sovereignty of every state, just like how we would not accept foreign laws infringing on our sovereignty.”

MEASURED AND TARGETED POWERS

In her closing speech, Ms Fu assured MPs that the National Environment Agency (NEA) will implement its expanded powers in a “measured and targeted” manner.

Addressing MPs who asked for more details on how the assessment and designation process will work, she explained the criteria for issuing directions to appoint assessors.

These will apply to three categories of entities – those who have been convicted of an offence or fail to comply with actions under the Act, those that are known to or suspected to have had business dealings with entities in the first category, and those that are known to or suspected to be “sufficiently related” to entities in the other two categories.

“We will be measured and targeted in who we issue these directions to. The goal is to ensure that we have the means to assess the risks posed by entities operating in sectors or industries that tend to contribute to haze pollution in Singapore,” said Ms Fu.

The government will also be clear about what assessors need to do and how they will work with the identified entities, with detailed rules to be set up in subsidiary legislation, she added.

Depending on the results, NEA may direct the company to take remedial action, publicise that it received an adverse or qualified report, prosecute it for an offence, designate it or put the entity on notice, said Ms Fu.

She also confirmed that the proposed amendments would not override legal advice or litigation privilege.

Among the MPs who raised the issue of proportionality in enforcement was MP Jessica Tan (PAP-East Coast), who asked the minister about the safeguards to ensure fairness.

"Prevention must be swift, but accuracy matters too," she said, while asking Ms Fu how haze risk will be assessed.

This is especially significant as it may affect Singapore's commercial relationships, financing arrangements and business operations, added Ms Tan.

Shanmugam explains why private firm appointed legal coordinator

A private legal firm was appointed as the coordinator for Singapore's anti-haze probes, instead of the Attorney-General's Chambers (AGC), as it can go into a foreign jurisdiction, Senior Minister K Shanmugam said on Wednesday.

He was responding to a question from MP Sylvia Lim (WP-Aljunied) on why the AGC was not tasked with the coordinating role, despite having a division devoted to international affairs.

"The answer is very simple. They may not be able to exercise their powers in a foreign jurisdiction because they would be treated as Singapore government agencies, and it's quite likely that they would not even be given access to the country, let alone conduct investigations," said Mr Shanmugam, who chairs the Homefront Crisis Ministerial Committee.

“So it had to be structured as the companies appointing private firms to do the work – investigative firms, law firms, and others are now the companies' appointees, and therefore they will have the ability to go into foreign jurisdictions.”

Law firm Davinder Singh Chambers has been appointed to advise on coordinating the work to make sure the necessary inquiries and investigations are properly conducted across different jurisdictions.

"Countries may still find excuses for not allowing them, but it is less likely that they will be prevented from accessing foreign jurisdictions," said Mr Shanmugam, who is coordinating minister for national security.

The government had to think about this carefully, and structure it “very carefully and quite elegantly”, so as to avoid issues relating to other countries, he added.

Mr Shanmugam, who is also home affairs minister, said the assessors' reports would be made available to government agencies, and the AGC would look at them to see what further actions can be taken in Singapore.

Ms Lim also asked about who will foot the bill for the coordinating law firm.

In response, Mr Shanmugam said that it would be paid for by the companies under investigation, as it is "treated as doing the work on behalf of all the companies".

"It is only right that the taxpayers ought not to be paying for it. It ought to be paid by the companies, and provision has been made for that," he said.

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COMPLIANCE COSTS FOR BUSINESSES

MPs also asked about compliance costs for businesses. Among those who raised the issue was MP Lee Hong Chuang (PAP-Jurong East-Bukit Batok), who said that while he supported the proposed stronger powers, they must not place undue burden on Singapore businesses that have done nothing wrong.

He noted, for instance, that a Singapore trader or food manufacturer could be "several steps removed" from those responsible for the fires.

Responding to MPs' concerns that the amendments could impose an undue burden on smaller companies, Ms Fu said the government will seek to minimise compliance costs for small‑ and medium‑sized enterprises (SMEs).

Businesses will not be penalised if they did not know, or had no reason to believe, that they were dealing with a designated entity, she said.

With designations, the government will be judicious in determining the scope of business restrictions, she added. It will also provide reasonable transition arrangements where appropriate to minimise unnecessary disruptions to legitimate business activities.

“Our measures are targeted at entities responsible for causing or contributing to the haze, while avoiding onerous obligations for businesses operating legitimately and responsibly," Ms Fu said.

She added that the changes will be implemented “carefully and proportionately”, and that NEA will continue working with other agencies, including the Monetary Authority of Singapore, to effectively implement them.